CHAPTER 6

ANALYZING CONSUMER MARKETS

Hidelza B. Castillo

February 5, 2014

Outline

What is consumer behavior?

What influences consumer buying behavior?

The buying decision process : Five-Stage

Model

What is consumer behavior?

Consumer behavior is the study of how

individuals, groups, and organizations select,

buy, use, and dispose of goods, services, ideas,

or experiences to satisfy their needs and wants.

What influences consumer buying

behavior?

A consumer’s buying behavior is influenced by:

1. Cultural factors - culture, subculture and social

class

2. Social factors - reference groups, family and

social roles and statuses

3. Personal factors - age, stage in the life cycle,

occupation, economic situation, lifestyle,

personality and self-concept

What influences consumer behavior?

1. Cultural factors

Buyer’s culture - learned values, perceptions, wants

and behavior from family and other important

institutions.

Buyer’s subculture – groups of people within a

culture with shared value systems based on common

life experiences and situations.

Filipinos

Chinese

Indians

What influences consumer behavior?

1. Cultural factors

Buyer’s social class – society’s relatively permanent

and ordered divisions whose members share similar

values, interests and behaviors.

Upper class

Middle class

Lower class

What influences consumer behavior?

2. Social factors

Reference groups – groups that form a comparison

or reference in forming attitudes or behavior.

Family – most important consumer-buying

organization in society.

Social roles and status – groups, family, club and

organizations to which a person belongs that can

define role and social status.

What influences consumer behavior?

3. Personal factors

Age and life-cycle stage

Youth - younger than 18 years

Getting started - 18 to 35 years

Builders - 35 to 50 years

Accumulators - 50 to 60 years

Preservers - over 60 years

Occupation affects the goods and services bought by

consumers.

What influences consumer behavior?

3. Personal factors

Economic situation includes trends in:

Personal income

Savings

Interest rates

Lifestyle - person’s pattern of living as expressed in

activities, interests and opinions.

What influences consumer behavior?

3. Personal factors

Personality - refers to unique psychological

characteristics that lead to consistent and lasting

responses to consumer’s environment.

Self-concept - refers to people’s possessions that

contribute to and reflect their identities.

Buying decision process: Five-Stage

Model

Postpurchasebehavior

Purchase decision

Evaluation of alternatives

Information search

Problem recognition

Cultural, social, and

personal factors affect

all steps

Buying decision process: Five-Stage

Model

Problem recognition

Cultural, social, and

personal factors affect

all steps

A buying process starts when

a buyer recognizes a problem or

need triggered internal or external

stimulus.

Buying decision process: Five-Stage

Model

Information search

Problem recognition

Cultural, social, and

personal factors affect

all steps

Information can be obtained from

personal, commercial or public

sources .

Buying decision process: Five-Stage

Model

Evaluation of alternatives

Information search

Problem recognition

Cultural, social, and

personal factors affect

all steps Consumer processes competitive

brand information and make final

value judgment.

Buying decision process: Five-Stage

Model

Purchase decision

Evaluation of alternatives

Information search

Problem recognition

Cultural, social, and

personal factors affect

all steps

The consumer executes a purchase intention.

Buying decision process: Five-Stage

Model

Postpurchasebehavior

Purchase decision

Evaluation of alternatives

Information search

Problem recognition

Cultural, social, and

personal factors affect

all steps

The buyer makes

postpurchase evaluation.

CHAPTER 6

ANALYZING CONSUMER MARKETS